Let's talk about subscription models 💰
Bahar Ozkan
26 replies
Love them or hate them? Do you prefer one-time purchases over subscriptions? Let's hear your thoughts!
For me, I love'em. Especially if the subscription price is based on the usage level, so I don't need to pay for what I don't use.
Replies
Sjoerd Handgraaf@sjoerdhandgraaf
Sharetribe
Apples & oranges, I think.
I agree that not everything needs to be a SaaS, as it seems to be the case with some products.
However:
- If the product is:
a) delivering a constant value (e.g. hosting, databases, analytics)
and/or
b) getting continually better/change (new content, new features)
and/or
c) the subscription price is much less than what a stand-alone, or build-it-yourself solution would cost,
then a subscription makes total sense.
Share
Choosing between a subscription model or a one-time purchase depends on the product nature. A subscription model can drive more user engagement and sustained growth, aiming for long-term renewals.
On the other hand, a one-time purchase often offers a more cost-effective price. These two approaches are not mutually exclusive;
the decision should ultimately be based on user needs.
One-time purchase is better!
AI Desk by Collov AI
It's all about getting the most value for what you're actually using.
IMO we'll see a surge in pay-per-usage business models. Pay-per-seat don't work during economic turmoil. Imagine that Netflix charged you only $2 because you just watched less than 5 movies for the month. Taking usage to the next level!
Launching soon!
I think it depends on the structure of the product and offering. For us we'll be looking at a subscription model, annual fee for a discount and POTENTIALLY a lifetime offering for our first cohort of users.
The hard thing with a one time purchase is that when you product is built with other tools (ex GPT) - a one time purchase can actually get you to a place where you have a negative LTV for power users.
If it's a lifetime thing to drum up some capital at the front end and you're okay with that risk I like a one time in a limited capacity.
delivering a constant value (e.g. hosting, databases, analytics)
Lancepilot
Depends on the tool. I think new products should always have a monthly subscription, cause people will always wanna try it out first. No one wants to pay for what they won't end up using for the entire year..
@mansi_trivedi1 but in this age, there are already so many active subscriptions most people have, it increases the friction for them to buy one more subscription!
Lancepilot
@curatedforfounders As I said, for a new product in the market it is necessary to offer people a trial period. So that they can get familiar with the services. Add the yearly plan as well but never let go of the subscriptons.
Huudle AI Project Assistant
@mansi_trivedi1 @curatedforfounders Good point; most people forget about what they subscribed for years ago while still paying them to date. It's frustrating.
As a customer, I prefer one-time purchase, it gives no headache.
But as a founder, man I love subscriptions 😂 it will keep my business afloat on the long run.
Love them! They provide the flexibility that every team needs!
I prefer a subscription model when I'm using a product regularly and value continuous updates, as it allows me to spread out the cost over time.
Subscriptions also appeal to me for their added services and the flexibility to cancel if my needs change.
On the other hand, a one-time payment model is my choice for infrequent use, as it helps me control my budget with a single payment.
Ultimately, my choice depends on how often I'll use the product, my budget preferences, and my desire for regular updates or additional services.
I'm a one-time purchase kinda guy. But I'm currently working on introducing a subscriber tier to my email newsletter.
I think for a paid subscription to work for the user, it comes down to adding value regularly, while continuously improving.
I think we can all agree that getting paid regularly is a pretty good thing!
We have built easy to use SaaS Startup and Growth financial models, AI version launching end of Jan- would welcome your feedback and support:
I personally prefer one time purchase